lasting-In the last reported quarter TPL sold just under $7 million of water that I presume was from a water-well recently drilled. What TPL announced during that quarter was the creation of a full service water business which will provide, test, recycle, and dispose of water. This endeavor will proceed based on the demand for their services by the producers of oil % gas and the fracking companies. In a way it is like the creation of a new business which will be funded by cash and earnings. TPL will continue to buy back and cancel their stock.
TPL has an advantage in that it owns so much land (in a checkerboard pattern) which could require competition to pay for an easement if they cross onto TPL lands. This could make it easier for TPL to partner with other on things like pipelines or water-lines. Of course if they do this without the competition all the better.
Keep in mind that water-pipelines are better than using trucks to bring water to where it is needed. Recycling is better than just a one time use, but water will likely have to be treated. There will be many angles to the water business and much in the way of competition. Owning land is a very big advantage. When one considers that the super-majors like Shell Oil and Chevron are planning to stick around for what could be the next 20 years, and are planning to increase production each year for at least the next 5, well there will be much money made.
TPL is a stock that investors can only make one mistake with it...they sell it! Seriously, this is one of those stocks that could hit $1500 within 5 years and perhaps even $3,000 within 10 years. What people do not get is this will be kept debt free and the buybacks will be continual. Being a "trust" management will not take advantage of the shareholders. They cannot issue themselves stock and do not pay themselves huge salaries. This, all combined, makes TPL "unique."
